Refiners Big Winners As U.S. Gas Prices Soar
Refiners big winners as U.S. gas prices soar-paper
http://today.reuters.com/investing/f...08_N24704751:1
Sun Sep 25, 2005 12:22 AM ET
WASHINGTON, Sept 24 (Reuters) - U.S. gasoline prices have soared in the past year and the companies that refine crude oil into gasoline have taken by far the largest share of the new revenue, the Washington Post reported on Sunday.
While the average price of gasoline has risen 64 percent over the past year, to $3.06 a gallon (4.5 litres) from $1.87, the refiners' take has risen 255 percent, to 99 cents from about 28 cents a gallon.
The paper said that prices had been increasing over the past year, aside from recent spikes caused by damage to oil production and refining facilities from Hurricane Katrina, which devastated the U.S. Gulf Coast on Aug. 29. It added that the effect of Hurricane Rita, which made landfall on Saturday, remained to be seen.
The data, compiled from analyst estimates and the U.S. Department of Energy, shows that oil producers increased their share of a gallon of gas by 46 percent to $1.46 from $1.00 while distributors and gas retailers increased their share by a penny to 18 cents from 17 cents a gallon.
The average of federal, state and local taxes increased 2 cents, to 44 cents from 42 cents a gallon, the report said.
The report also stated that interviews with analysts, consumer advocates and industry participants indicate that typical market forces have cased the run-up in prices.
Some U.S. lawmakers, however, are outraged at what they see as excessive profits. "They are ... profiting in an extraordinary way at the expense of the American consumer," said Sen. Byron Dorgan, a North Dakota Democrat who has introduced legislation to tax certain oil company profits.
